Save First, Spend Later

Life without a financial saving plan can be compared to a person jumping off a plane in a perforated parachute. It is bound to crash land! Let us recall one of Warren Buffet’s famous quotes, ‘Do not save what is left after spending; instead, spend what is left after saving.’ Spending has practically no limits. One could go on spending way beyond his means, ultimately getting into the debt trap. Saving is not possible unless we exercise control on spending. Many famous business establishments have gone bankrupt as a result of overspending or financial mismanagement.

One of the major risks in any business is receiving payments from customers. Delay in payments or, even worse, non-payment from a bad customer could potentially jeopardise the operations of a business. It is, therefore, wise to save a portion of the profits for such contingencies. A prudent business always prepares for such risks and takes suitable measures beforehand. I had learnt valuable lessons from the company I worked for earlier, which collapsed due to its extravagance. So when we started our company, we exercised restraint in spending. We ran a carefully budgeted production centre, in sharp contrast to the swanky setup of my previous company, that soon became defunct.

The Bible teaches us to learn from the ant that saves food for the off season (Pro 6:6-8). It is prudent to set aside at least 25-30 percent of what we earn and spend from the remaining 70 percent. Prioritising our needs, followed by disciplined spending, is critical in managing our expenses after saving. We must use discretion in choosing necessities over our desires. We should learn to live within our means and not imitate others or have their standard of living as our benchmark.

Indulging in get-rich-quick schemes is a recipe for disaster. I Tim 6:9 signals a clear warning to such people. The husband and wife should avoid prodigal spending and must inculcate in their children good spending habits. Learning to invest our savings wisely is another important step in multiplying what we have saved.

Dear Lord, grant me wisdom in managing the money You have entrusted me with. Help me to overcome the temptation of reckless spending but enable me to save money so as to avoid getting into debt and to help others in need. Amen